The Trump administration plan will be aimed at 30 countries of the continent and is called "America Crece", and consists mainly of the development of private investments, granting loans and sale of natural gas surpluses.
The U.S. government's objective is that, with the application of América Crece, job creation will be facilitated through the development of infrastructure in airports, ports, highways, digital networks and telecoms, but the big bet will be energy projects.
From January to June 2019, 52 environmental impact studies were presented to carry out works on electricity networks and build power generation plants in different areas of Central American countries.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
Banco Agromercantil de Guatemala announced a $43 million loan for the construction of part of the 54 MW Ventus wind farm to be located in the municipality of Metapán.
The execution of five energy and infrastructure projects in Southern Mexico and the Northern Triangle of Central America could boost the area's economic growth and slow migration.
The projects discussed now are not new, they have been part of the discussion of the region's businessmen and governments for years, but now they have come back into the discussion, as a possible response to the pressure exerted by the U.S.
After several years of carrying out studies of the work, the governments announced that they plan to begin working on the standardization of regulations to sign the agreement of the electrical interconnection project.
In a press release published on March 19, Panama's Presidency stated that Panama's Energy Secretary, Victor Urrutia, informed that the Agreement required for the implementation of the electric interconnection project that will link the Andean and Central American systems will soon be signed.
Lack of legal certainty, electricity theft and social conflicts are forcing businessmen in Guatemala's energy sector to choose to relocate their investments to El Salvador.
Last year, the companies Applied Energy Services (AES) and Corporación Multi Inversiones (CMI), both US and Guatemalan capital, decided to invest $47 million in solar energy projects, encouraged by the facilities offered to the energy sector in El Salvador.
With 19% endemic poverty, 10% open unemployment and 40% informal employment, and some of the highest electricity rates in the region, Costa Rica is opposed to $1 billion in clean energy investments.
EDITORIAL
By Jorge Cobas González
Meanwhile, the bureaucracy of state-owned companies continues to prescribe first-world remuneration, and continues to protect its privileges following ECLAC development concepts from the middle of the last century, which are utterly out of place today.Because Costa Rica does not have the investment capacity or know-how necessary for the development of latest generation renewable energy projects, even though it has all of the necessary primary conditions: sun, wind, thermal energy.
In 2016 44% of foreign direct investment in the region was concentrated in Panama, and a fourth consecutive year of increases was recorded, with 16%, while Costa Rica received 27% and increased by only 1.1%.
From chapter I of the report "Flows of FDI in Latin America and the Caribbean", by the ECLAC:
FDI into Central America grew by 3.7% in 2016 and totaled 11,833 million dollars.The increase in investments to the two main recipients of the subregion -Panama, which recieved 44%, and Costa Rica, 27%- compensated for the drop in FDI to the other Central American countries.
Of the 34,629 GWh generated in 2015 by the countries included in SICA, 68% came from hydropower, 11% from cogeneration in sugar mills, 11% was geothermal, 9% wind and 0.1% based on biogas.
From a report by Cepal entitled "Statistics of electricity production by countries in the Central American Integration System (SICA)":
Salvadoran authorities outlined investment opportunities in the sector, announced a 150W tender and detailed the inner workings of the electricity market in the country.
INTRODUCTION
The electricity sector in El Salvador is characterized by an electricity market in which public and private investors are able to compete with clear and transparent rules.
On October 20th and 21st entrepreneurs from the region will gather together in Panama City to discuss issues such as the electricity market rules, new and renewable energy projects.
From a statement issued by the International Symposium on Energy:
This year the 8th. International Symposium on Energy seeks to promote spaces for reflection on energy issues, to help analyze the performance and limitations of developing new projects, build consensus, define the options for the energy market and, finally, develop a social impact using the media.
The state run electricity companies have signed a cooperation agreement to develop joint research activities and establish a legal framework for the future exchange of energy in the regional electricity market.
Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) of El Salvador, which has an installed capacity of 472 megawatts, and the Instituto Nacional de Electrificación (INDE) of Guatemala were responsible for signing this agreement which will facilitate energy trade.
Although they have managed to link the last stretch of 32 kilometers which was missing from the electricity grid in the region, there is still not any regulation to define rates and market performance.
After several delays caused by problems related to easements and environmental claims, the construction and electrical connection of the 32 kilometers that were pending between the canton of Parrita and the district of Palmar in Osa, Costa Rica has been completed.
Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.